Guam § 22951 - Authorization of Issuance of Limited Obligation

§ 22951. Authorization of Issuance of Limited Obligation

Infrastructure Improvement Bonds.

The Governor of Guam is authorized to issue on behalf of the

Government an issue of bonds of the Government consisting of

refunding bonds and new money bonds, subject to the following

requirements and limitations:

(a) The issuance of the bonds shall not cause a violation

of the debt limitation provision of Title 48 U.S.C. § 1423a

(§ 11 of the Organic Act of Guam).

COL4/6/2022

(b) All obligation of the Government to pay debt service

on the prior obligations shall be discharged concurrently with

the issuance of the refunding bonds. Thereafter, any

remaining debt service on the prior obligations shall be

payable solely from and secured solely by a refunding escrow

established for such purpose.

(c) The aggregate principal amount of refunding bonds

issued shall not exceed the amount necessary to pay the prior

obligations, including by funding the refunding escrow,

establish a bond reserve fund allocable to the refunding

bonds, and pay expenses incurred in connection with the

issuance of the refunding bonds.

(d) The aggregate principal amount of new money

bonds issued shall not exceed the amount necessary to fund

the projects in § 22958, establish a bond reserve fund

allocable to the new money bonds and to pay expenses

incurred in connection with the issuance of the new money

bonds.

(e) The aggregate principal amount of the bonds issued

shall not exceed Eighty Million Dollars ($80,000,000).

2012 NOTE: In maintaining the general codification scheme of the GCA

the Compiler changed the hierarchy of subsections beginning with

“Numbers” to “Lowercase Letters” in this section.